Beverage giant Coca-Cola Co raised its annual revenue and profit forecasts on Tuesday, banking on demand to remain steady for its sodas amid multiple price increases taken to blunt the impact of surging costs.
Coca-Cola has been steadily raising prices in markets across the globe this year on expectations that its products were among the last to see a slowdown in demand during economic downturns.
Lack of major competition in the global carbonated drinks market has also encouraged Coke and rival PepsiCo Inc to hike prices. PepsiCo raised its annual forecasts earlier this month after topping quarterly revenue estimates.
Coca-Cola said net revenue rose 10% to $11.1 billion (€11.02 billion) in the third quarter ended 30 September. Analysts on average had expected revenue of $10.52 billion (€10.44 billion), according to Refinitiv IBES data.
The company forecast organic revenue, which excludes the impact of a stronger dollar, to rise 14% to 15% in 2022, compared to prior expectation of 12% to 13% increase.
Coca-Cola forecast full-year adjusted earnings per share to rise 6% to 7%, compared to prior expectation of 5% to 6% growth.
Commenting on the company's performance, James Quincey, chairman and CEO of The Coca-Cola Company, said, “Our strong capabilities and consumer insights continue to help us win in the marketplace.
“Our business is resilient amidst a dynamic operating and macroeconomic environment. We are investing in our strong portfolio of brands, which is a cornerstone of our ability to deliver long-term value for our stakeholders.”